Shares of Nvidia Corp. have rallied 25 percent and broke past the $300 mark for the first time ever in Wednesday's after-hours trading to attain a new all-time high for the American tech company.
It looks like 2020 is going to be Nvidia's time to shine because of the the stock has been seeing a huge amount of recovery and has finally hit a record high of $314.70.
The peak is mostly on the back of the much-hyped unveiling of its latest Ampere GPUs as well as a speculated shift to 7Nm which would allow the company to tone down costs while hiking the performance profile of its graphics cards.
Nvidia's stock has been buoyed by an increasing Buy demand for the shares. This buying trend began in the second half of last year. The company's shares have soared 40 percent since then.
Nvidia's shares opened at a high of $301.49, went on to register an all-time intraday record of $315.41, and settled at $314.70, their third record close in the last three sessions, Wednesday. The stock breached levels not seen since October 1, 2018, after the company posted record data-center sales Thursday in its earnings report.
Another driver for the Santa Clara, CA-based company's comeback is the fact that Turing GPU is becoming more affordable to the masses. And it's Super GPU lineup of graphics processing unit has cut down the price of gaming by providing more powerful GPUs for cheaper prices and the non-RTX Turing Series has become a crowd favorite.
Just recently, Nvidia stock has attracted four huge money Buy signals, indicative of heavy buying in the stock. This proves that traders are likely thinking the shares are set to soar higher. Latest figures suggest that big investment appetite for the stock is increasing.
Of the 39 Wall Street analysts who covered Nvidia stock, 29 currently have Buy or Overweight ratings, 8 have Hold ratings and two placed Sell or Underweight ratings.
Since Nvidia's earnings release, more than 50 percent of Wall Street stock observers that cover the company for years have jacked up their price goals, with the average price aim pegged at $306.24, compared with $297.15 the day following the earnings report and $262.40 the day prior.
Based on history, the odds indicate that Nvidia stock has a very strong potential to grow. The big money, analysts said, is always looking for an opportunity to acquire shares on the cheap. It is all about playing the odds by not going against the trend, they said.
